Group Life (DIS)

With living conditions and modern medical care we are now living longer. This can make unexpected death even more shocking and hard to deal with. The death of a main breadwinner within the family can put significant pressure on the family concerned and as a result may suffer financial hardship. To have that piece of mind that the family left behind will be provided for is a valuable benefit to employees.

Group life (or death in service) policies are a low-cost, high-value benefit to employees and can be tailored to your company’s needs and requirements.

What does Group Life Assurance provide?

Group Life Assurance protects the employee’s family and dependents if the employee dies whilst in service with the employer. It is a simple and yet very effective way for employers to help plan for the unexpected.

In the event of death the policy can pay a lump sum between one times and four times the members scheme salary. This can be invaluable to the employee’s family and can help with costs like mortgages, school fees or just day to day living.

A spouse’s pension up to the HMRC limit of 4/9th of the member’s salary can also be provided for the spouse and an additional pension may be provided for other dependents such as children. It is possible to provide protection again inflation by including an escalation option.

Group Life Schemes are set up under Trust and therefore will not form part of the member’s estate and under current legislation are not subject to Inheritance Tax or Income Tax.

Group Life Schemes give you the ability to choose which categories of staff are covered. You can include all employees or specific categories such as those of a certain staff grade with service requirements if required.

A simple set-up procedure with no forms or medical history required if benefits do not exceed the Free Cover Limits which many insurers now offer in the market place and most aim to pay the claim with 72 hours of receiving the death claim.

Whether your business is a major plc or has five employees, Group Life Insurance is flexible enough to suit your needs and address many concerns of your employees

What are the benefits to the Employer?

• By providing staff these benefits it demonstrates an employers concerns for the wellbeing of its staff and can improve the employee and employer relationship
• There is a wide variety of options available on Group Life schemes which means the right plan can be constructed for your company.
• Premiums paid by the company are usually allowable as a business expense and the company will be able to receive Corporation Tax relief on the premiums which can reduce the real cost for the employer
• Part of a complete and attractive benefits package helping to recruit and retain high calibre staff.
• We can help setting up the scheme under the HMRC rules and will give the employer full support and guidance in future administration of the scheme and can also provide the employer with employee literature.

If you would like any further information or which to talk to an Employee Benefit Specialist please call 0845 30 50 333